Several major US banks are being sued for unfair PPP lending practices - Business Insider

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Major US banks are being accused of prioritizing higher-value loan applications, rather than processing requests on a first-come, first-serve basis

The lawsuits accuse the banks of prioritizing higher-value loan applications, rather than processing the requests on a first-come, first-serve basis — which the PPP intended — leaving thousands of businesses without loan access. PPP funding was within two weeks of being made available, but in the three days before it dried up, banks allegedly processed loan applications for $150,000 at less than twice the rate of larger loans.

The lawsuits claim that the largest loans were front-loaded so that banks could earn higher commissions from the government, which is banks to process loans: Fees range from 5% for a loan under $350,000 to 1% for a loan over $2 million. Though the preferential treatment that banks are allegedly giving to larger loan requests may not be outright illegal, they must be mindful of how their procedures are being perceived. BofA was separately

 

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Shock

Anyone who has ever dealt with a big bank such as Chase, WellsFargo, usbank or BankofAmerica already knows this to be true. BankLocal

Unethical

Government should have done a better job on incentivizing banks on processing smaller payroll loans than larger. They did try with a tiered commission but it wasn’t effective enough. As a reminder, people should never want big government cause they rarely get things done right

Hate to break it to you but this is all banks regardless of size

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Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

In Race for Small-Business Loans, Winning Hinged on Where Firms BankThe small businesses that received government aid weren’t always the ones with the greatest needs or the best chances to survive the pandemic. When it comes to corporates and businesses who are worth millions and billions of worth, these sick govt wouldn't even bat an eye to bail them out but when it comes to bailout the people, they'd required messy criteria to be eligible for it. Fuck the corporate govt. This wasn’t built into the PPP. You could have written this article before it went live This IS HORRIFYING TO THOSE IN THE MOST NEED.. HOW WILL WE EVER BE ABLE TO PULL THRU,W/OUT SERIOUS CONSIDERATIONS MADE. IN ADDITION TO THE CREDITORS ETC, SMALL BIZ OWNERS WILL Need TIME TO GET BUSINESS GENERATING CASH FLOW DOES NOT HAPPEN IMMEDIATELY.
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